Construction Labor Costs - 5 Percent Factor

Improve Your Construction Labor Costs

Most construction companies only make an average annual net profit between 2 and 3 percent. Improve your construction labor costs by only 5%, and you can improve your net profit amount to 4-5%. This can be as much as a 100 percent increase in your construction business’ bottom line!

In addition to saving on your crew labor budget, the overall construction project will finish faster as well. You will save even more money concurrently on general conditions, equipment, clean-up, temporary facilities and supervision costs.

Poor Production in Construction= Poor Construction Business Profits!

Do you think your construction crew wastes at least three to six minutes per hour? Those few minutes are costing you a ton of money. (see Figure 4 below)

There are many ways to improve crew efficiency and finish your jobs faster. Start by taking a hard look at your start time, break time, lunch time and quitting time. Does clocking out at 3:30 p.m. mean start rolling up at 3 p.m. or 3:10 p.m. or 3:30 p.m.? For a twenty-person crew, every minute you lose per day costs you as much as $2,500 per year or more.

George Hedley is the best-selling author of “Get Your Business to Work!” As an entrepreneur, popular speaker and business coach, he helps business owners build profitable companies. E-mail gh@hardhatpresentations.com to request your free copy of “$ure $trategies To $urvive A $lowdown!” or sign up for his free monthly e-newsletter. To hire George to speak, attend his “Profit-Builder Circle” academy or join an “Executive Roundtable Group,” call 800-851- 8553 or visit www.hardhatpresentations.com .